New Delhi, February 11 Shares of Bharat Heavy Electricals Ltd (BHEL) plunged 6 per cent on Wednesday after the government announced plans to sell up to a 5 per cent stake in the state-owned company via a sale offer.
The stock fell 6.10 per cent to Rs 259.25 per share on the NSE.
On the BSE, BHEL's shares declined 6.07 per cent to hit an intraday low of Rs 259.30 per share.
Meanwhile, the 30-share Sensex fell 125.41 points, or 0.15 per cent, to 84,148.51, while the NSE Nifty slipped 11.50 points, or 0.04 per cent, to 25,923.65 in the mid-session trade.
On Tuesday, the government announced that it will sell up to 5 per cent stake in BHEL via an Offer For Sale (OFS) beginning on Wednesday at a floor price of Rs 254 per share.
"The government offers to divest 3 per cent equity in BHEL with an additional 2 per cent as a green shoe option," said DIPAM Secretary Arunish Chawla on X.
The issue will open for non-retail investors on Wednesday, while retail investors will get to submit their bids on Thursday.
If fully subscribed at the floor price, the sale of 17.41 crore shares, or 5 per cent stake, would fetch the government Rs 4,422 crore.
The floor price of Rs 254 per share is about 8 per cent below BHEL's closing share price of Rs 276.05 on the BSE.
The base issue size comprises over 10.44 crore shares, or 3 per cent stake, in BHEL, plus a green shoe option to sell over 6.96 crore shares or 2 per cent.
The government holds 63.17 per cent in BHEL. BHEL's shares closed at Rs 276.05, up 0.53 per cent over its previous close on Tuesday.
So far in the current fiscal year, the government has raised Rs 8,768 crore through disinvestment of PSUs.
